RECENT DEVELOPMENTS

Airlines

• SPIRIT SHUTDOWN. On May 2, Spirit Airlines shut down operations, citing spiking jet fuel prices due to the Iran war. Reporting also suggests United Airlines urged the Trump Administration to let Spirit fail. DOT Secretary Sean Duffy, however, blamed Biden DOJ’s blocking the JetBlue/Spirit merger, though Spirit’s own board anticipated that the merger would be blocked and rejected competing offers from Frontier Airlines in pursuit of a higher share price from JetBlue. Bankruptcies, shutdowns, and financial distress have plagued the entire airline industry since the passing of the Airline Deregulation Act of 1978, and other low-cost carriers have already requested bailouts to cover high fuel costs. Meanwhile, Secretary Duffy and his family have been filming a road-trip reality show, sponsored by companies DOT regulates, like United Airlines and Toyota.
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• LET’S MAKE A DEAL? Before Spirit’s failure, DOT Secretary Duffy was cheerleading airline consolidation despite just four carriers – American, Delta, United, and Southwest – controlling 80% of domestic flights. Subsequently, United Airlines CEO Scott Kirby floated the idea of  merging with American, which prompted bipartisan backlash, including a letter from Sens. Lee (R-UT) and Warren (D-MA) concerned about higher fares and fewer flights. The Monopoly Busters Caucus cited risks like price gouging and worse customer service. Even President Trump criticized the potential combination. American later said a merger with United was a “nonstarter” and would hurt consumers. However, American may be pursuing a revenue-sharing agreement with Alaska to expand to the west coast. Among the low-cost carriers, DOJ just fast-tracked a merger between Allegiant Airlines and Sun Country, two low-cost carriers servicing smaller cities and vacation destinations.
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• REQUIEM FOR FARE PRICES. In 2024, former FTC Chair Lina Khan warned that airlines could deploy surveillance pricing – using consumers’ personal data to set individualized prices – to hike fares when consumers had to travel for events like funerals. In February, a now deleted JetBlue tweet recommended a passenger clear internet cookies or use an incognito browser to get a lower flight price–showing the company was using browsing history to increase prices. In response, Congressman Casar (D-TX) and Senator Gallego (D-AZ) sent a letter demanding more information about JetBlue’s practices. JetBlue denied they were engaging in surveillance pricing, but a class action lawsuit filed against them alleges just that. Congressman Casar’s Stop AI Price Gouging and Wage Fixing Act and Senator Gallego’s One Fair Price Act would prohibit such practices.

Reining in Big Tech 

• JURIES FIND META & GOOGLE GUILTY. For years, parents have decried how Big Tech endangers kids’ mental health. In March, two juries agreed, finding Meta and Google’s YouTube guilty of addicting children to their platforms. The lawsuits – one filed in California by a plaintiff and the other by the New Mexico AG – focused on how the Big Tech giants design their platforms to addict kids to their feeds, harming mental health and exposing them to sexual predators. This approach diverged from prior legal theories that tried to hold them responsible for third-party content, which allowed the companies to skirt accountability by relying on the Section 230 liability shield. Though damages of $6M in California and $375M in New Mexico won’t meaningfully impact Meta and Google, the cases could spur other private plaintiffs and enforcers to file lawsuits. It’s a threat Meta recognized when they began removing law firm advertisements seeking clients harmed by social media following the verdicts. Sen. Blackburn (R-TN) swiftly rebuked the response, but President Trump still tapped Meta CEO Mark Zuckerberg to join his Council of Advisors on Science and Technology.

Improving Health Care

• INDEPENDENT DOCTORS UNDER WATER. In the early 1980s, over three-fourths of doctors owned their own practices, but by 2024, only about one-third did. More doctors now work for Big Medicine corporate entities like large hospital systems or vertically integrated giants like United Health Group. A new Economic Liberties report details how this shift relates to the financial challenges doctors face – from increased medical training costs at the start of their careers to lower reimbursements from government insurance once they start practicing. Fewer independent practices drive up costs for patients and reduce access to more personal care. Momentum is building among lawmakers in Washington to take on Big Medicine, and new polling found 90% of voters think health insurance conglomerates have too much control over healthcare and should be broken up.
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• BIG HOSPITALS, BIG SCRUTINY. Though sometimes receiving less attention than big insurers, big hospitals significantly contribute to rising healthcare costs. For example, in 2024, Americans spent over $1.6 trillion on hospital care, over a third of all healthcare spending. Washington is starting to act. In March, Sen. Murphy (D-CT) and Representative Scanlon (D-PA) introduced the Take Back Our Hospitals Act to ban private equity firms from owning hospitals and nursing facilities. In March, the DOJ filed a lawsuit against New York-Presbyterian, New York’s largest hospital system, for steering patients to their hospitals over other facilities with lower copays. The lawsuit against NY-Presbyterian is DOJ’s second recent antitrust lawsuit filed against a large hospital system. Last month, the House Ways and Means Committee hosted a hearing with hospital CEOs, including from NY-Presbyterian.

Media

• STATE AGs HALT NEXTSAR/TEGNA, FOR NOW. In March, DOJ and FCC approved the merger between broadcast television groups Nexstar and Tegna. The deal allows Nexstar to control 265 local broadcast television stations, reaching 80% of U.S. households, doubling the statutory limit. However, in April, a federal judge temporarily halted the merger pending the resolution of an antitrust lawsuit from state AGs and DirecTV. Following the decision, 5 Republican AGs joined the lawsuit, but right before stepping down, Ohio AG Dave Yost settled with Nexstar, requiring the company to independently operate the two Columbus broadcast stations it will own. Sens. Cruz (R-TX) and Cantwell (D-WA) continue to question FCC Chair Brendan Carr’s decision to approve the deal, overriding ownership limits set by Congress and bypassing a vote from his fellow commissioners.
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• PARAMOUNT/WBD ANNOUNCES FOREIGN OWNERSHIP & OPPOSITION MOUNTS. While the DOJ reviews Paramount’s $111M bid to buy Warner Bros. Discovery, David Ellison, CEO of Paramount-Skydance, hosted a private dinner honoring President Trump with Acting AG Todd Blanche in attendance – yet another example of the corruption permeating the Trump DOJ. Meanwhile, opposition to the merger continues to grow. Senator Cory Booker (D-NJ) held a hearing highlighting Hollywood’s concerns after nearly 5,000 writers, actors, and directors signed a letter opposing the deal. Cinemas United, theater owners’ largest trade organization, pushed state AGs to sue because it will reduce new movies in theaters. New York City Mayor Zohran Mamdani said the merger “must be stopped” to save jobs, and over 30 members of California’s congressional delegation called on California AG Rob Bonta to scrutinize the deal. Paramount also disclosed foreign ownership in the combined firm would be 49.5%, far above the 25% level that requires FCC approval. The FCC is seeking public comment on foreign ownership until June 11^th. Check out Mark Ruffalo’s and Economic Liberties Research Director Matt Stoller’s NYT op-ed explaining Hollywood’s fear of speaking out against the deal.
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• SPORTS STREAMING PROBES ABOUND. The Sports Broadcasting Act of 1961 (SBA) allows professional sports leagues to negotiate media rights without triggering antitrust scrutiny. The law was passed in an era when watching sports was free on broadcast television. As more NFL games are moving off broadcast and cable television to streaming services like Netflix, Amazon, YouTube TV, and Peacock, fans can pay as much as $1,500 to watch a season of games. The NFL isn’t stopping there. The league released its 2026 schedule this week, which includes more games exclusively on streaming platforms than ever. They have also indicated they want to double its revenue it gets from media rights deals over the next decade, charging broadcasters and platforms more, which will further increase costs for consumers. In response, the DOJ launched an investigation into whether the NFL’s and MLB’s deals with streaming services should qualify for the SBA’s antitrust exemption. The DOJ investigation follows a letter from Antitrust Subcommittee Chair Sen. Lee (R-UT) asking the agency to probe NFL on rising streaming prices. The FCC has also launched an inquiry, though Chair himself has suggested it might not result in any action. Sen. Warren (D-MA) and Rep. Ryan (D-NY) responded, explaining consolidation in streaming raises prices. NFL executives also met with the FCC in response to the probe, claiming the current approach is “good for fans.” Check out the Economic Populist for more on why it’s time for Congress to revisit the SBA antitrust exemption.

Merger Mix

• FEDERAL JURY FINDS LIVE NATION-TICKETMASTER IS A MONOPOLIST. In 2024, the DOJ and 40 states filed a lawsuit against Live Nation-Ticketmaster for monopolizing the live events industry. Trump’s DOJ settled the case days into the trial under corrupt circumstances, with only minor concessions from Live Nation. But 30 bipartisan state attorneys general continued the trial. In April, a federal jury in New York found Live Nation-Ticketmaster guilty on all counts of maintaining an illegal monopoly over entertainment venues and ticketing. State attorneys general and Live Nation must submit proposals for remedies by May 21^st, and the court must also decide when to begin Tunney Act proceedings to review whether the DOJ’s settlement was in the public interest. Check out Economic Liberties conversation with former AAG Jonathan Kanter, NY AG James, and CO AG Weiser following the verdict, and a brief outlining remedies to address Live Nation’s monopoly, including a breakup.
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• CONGRESS TAKES AIM AT TRUMP ANTITRUST CORRUPTION. The Trump Administration has approved several anticompetitive mergers, such as HPE-Juniper and Compass-Anywhere Real Estate, that involved lobbying, multi-million dollar payments to the Trump family, and media censorship. Senate Democrats, including Sen. Booker, Heinrich (D-NM,) and Hirono (D-HI) recently took aim at this corruption with the Correcting Lapsed Enforcement in Antitrust Norms for Mergers Act (CLEAN Mergers Act). The bill would require divestiture of mergers completed during the Trump Administration valued over $10B, unless the company can prove there was no harm to competition and require review of other mergers for evidence of corruption. This bill follows Sen. Klobuchar’s (D-MN) Antitrust Accountability and Transparency Act to increase oversight of federal settlements under the Tunney Act. In addition, Sen. Warren (D-MA) led a bicameral group of Democrats in pressing DOJ Acting Inspector General Blier about corruption at the agency. Check out Economic Liberties’ “Bending the Knee” event for more on the Administration’s antitrust corruption.
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• RESTAURANTS THREATENED BY MERGER, HIGH FOOD COSTS. Restaurants are feeling the pinch from higher food prices – the Texas Restaurant Association has noted that food costs are up 35% and half of all Texas restaurants were not profitable in 2025. Data from the National Restaurant Association showed 82% of restaurants faced higher food costs in 2025, and the James Beard Foundation found restaurants often can’t pass the full extent of those increases on to consumers without losing business. Against that backdrop, Sysco, the largest food wholesaler to restaurants, announced in March it was paying $29.1 billion to acquire Jetro Restaurant Depot, the largest food wholesaler to small and independent restaurants. The Independent Restaurant Association is urging the FTC to block the merger to prevent food price hikes for restaurants and their customers.

Private Equity

• PE’S YOUTH SPORTS SHAKEDOWN. Last December, Economic Liberties Senior Legal Fellow Katie Van Dyck testified before a House Education and Workforce Subcommittee that in recent years “private equity firms have quietly and systematically captured the youth sports industry… turning what was once an affordable public good into a profit-extraction machine.” As a result, families are going deep into debt, kids are burning out and quitting sports earlier, and fewer kids from low-income households can afford to participate. On Wednesday, Reps. Deluzio (D-PA,) Ryan (D-NY,) Jayapal (D-WA,) and Craig (D-MN) and Sens. Murphy (D-CT) and Booker (D-NJ) introduced the Let Kids Play Act, to stop the harmful practices by the private equity industry that are making participation in youth sports too costly for American families. The bill follows Rep. Deluzio’s (D-PA) April field hearing in Allegheny County, Pennsylvania where parents and coaches shared how it’s becoming increasingly difficult for families to participate in youth sports. Check out More Perfect Union’s coverage on the costs of PE-controlled youth sports.

Prices

• CONGRESS CAN FIGHT UTILITY COSTS, TOO. U.S. consumers’ electricity bills have increased by 33% since 2019, and polling shows that over 90% of voters in battleground states believe Congress can step in to help lower prices, and certain members are taking note. In April, Rep. Casar (D-TX) and Riley (D-NY) introduced the Lowering Utility Bills Act to stop FERC from greenlighting excessive utility profit margins and to ban utilities from passing unnecessary spending to consumers, like political contributions, lobbying fees, and flights on private jets. The bill could save households $500 annually. Check out Economic Liberties’ Senior Fellow for Utilities Marissa Gillett’s paper for more background on FERC and how Congress can lower utility prices.

Housing

• INSTITUTIONAL INVESTOR BATTLE CONTINUES. Critics of policies to restrict institutional investors housing ownership often argue that these types of owners control a small percentage of housing nationally. However, a new Economic Liberties paper, highlighted by Sen. Warnock (D-GA,) details how investors own large amounts of rental housing in certain cities, including the largest concentration in Atlanta. The report uncovers how policy decisions after the Great Recession accelerated institutional investor ownership of single-family homes, and builders now construct homes with the intent to sell them to institutional investors – known as “build-to-rent.” Both practices restrict housing supply for families, driving up costs for buyers and renters. Eight-in-ten Americans want policymakers to do something about these practices and support banning Wall Street firms and institutional investors from owning single family homes.  A bipartisan deal in the House, however, is now going to weaken the restrictions on institutional investor ownership, including build to rent housing, the Senate passed in the ROAD to Housing Act. President Trump meanwhile has demanded the House pass the Senate bill. The House is anticipated to vote on their revised bill next week.

Promoting National Security

• REPAIR RIGHTS TRIBULATE. Defense contractors use right-to-repair restrictions to price gouge the DoD and American taxpayers, such as charging the Army $47,000 to repair a $15 knob on a Black Hawk helicopter. Despite the Trump Administration’s support for giving the military more control over repairs, bipartisan “right to repair” legislation led by Sens. Warren (D-MA) and Sheehy (R-MT) was stripped from the final version of the 2026 National Defense Authorization Act (NDAA) after major defense contractors and John Deere spent $2M lobbying against it. Now, Army Undersecretary Michael Obadal says the administration will pursue a narrower right to repair approach in the 2027 NDAA. Separately, Sens. Warren (D-MA) and Hawley (R-MO) introduced Prioritizing the Warfighter in Defense Contracting Act to ban stock buybacks and excessive executive compensation in defense contracting.

Agriculture

• DOJ CHICKENS OUT. In 2023, the DOJ sued Agri Stats, a data information exchange company, for helping the largest meat processors collude to artificially constrict output, raising prices for consumers. The Sherman Act bans collusion among competitors. But a 2007 SCOTUS case, Bell Atlantic v. Twombly, made it more difficult to prove. Despite Agri Stats losing attempted motions to dismiss, signaling the DOJ had a strong case, the Trump Administration agreed to another weak antitrust settlement just weeks before trial. The settlement terms require Agri Stats to change the information it provides in its data reports and make some of its information public. Check out further comments on the settlement from Economic Liberties Lee Hepner in the NYT. Separately, Rep. Scanlon (D-PA) recently introduced the Competitive Prices Act, which would change pleading standards to make it easier to bring price-fixing cases.

Admin

• FTC IN THE HOT SEAT. Last month, FTC Chair Andrew Ferguson and Commissioner Mark Meador testified for the first time before the Senate Commerce Committee. Billionaire Republican FTC Commissioner Nominee David MacNiel is still awaiting Senate confirmation. During the hearing, Sen. Cantwell (D-WA) highlighted the FTC’s lack of independence after President Trump fired FTC Democratic Commissioners Rebecca Slaughter and Alvaro Bedoya. Sen. Cantwell also criticized Ferguson for dismissing a Robinson-Patman Act case against PepsiCo, where the evidence showed the company worked with Walmart to stop smaller retailers from offering lower prices on Pepsi products. Similarly, Sen. Rosen (D-NV) pressed Chair Ferguson on whether the FTC was addressing surveillance pricing by grocery stores that increases costs for consumers. Sen. Lujan (D-NM) pressed Chair Ferguson on energy price hikes stemming from the Iran war. The FTC released a flurry of announcements days ahead of the hearing, including a notice of proposed rulemakings on rental housing and online grocery delivery fees, and took action against a handful of companies for falsely claiming its products were ‘Made in America.’

Trade

• DEMS SEEK NEW PATH FORWARD ON TRADE? On May 14, Rep. Rosa DeLauro (D-CT-3) introduced the Fair Trade for Working Families resolution with 30 original Democratic cosponsors from New Democrats to Progressive Caucus members. The bill outlines a new American trade policy sharply different than the “neoliberal” North American Free Trade Agreement and Trans-Pacific Partnership model favored by Presidents Bush, Clinton, Bush and Obama. Pres. Trump harnessed workers’ rage about the mass job offshoring and deindustrialization caused by that old model to win the presidency twice. But the Democrats’ proposal also breaks with Trump’s second-term approach of off-and-on tariffs and trade deals that do not focus on policies needed to deliver for working families and only favor Big Tech and other corporate interests. Since Trump returned to the White House, there are 82,000 fewer U.S. manufacturing jobs. The bill builds on elements of trade policy from Trump’s first term and the Biden administration to target other countries’ mercantilist abuses – from wage suppression and labor and environmental abuses to currency manipulation and extreme subsidies – while also laying out domestic trade, tax, procurement and other policies to develop a new trade model that supports American workers getting paid good wages in new facilities nationwide producing more quality goods and services for fellow Americans while strengthening U.S. security and resilience by diversifying the nations from which we import. The proposal describes what must and must not be in all future U.S. trade agreements, but also how tariffs can be used strategically and what other policies are needed to ensure trade increases of resilience and security. The legislation is widely supported by unions and civil society organizations, including Economic Liberties’ own Rethink Trade. The resolution comes as polls find that most Americans distrust Trump’s approach to U.S. trade policy.
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• TARIFF REFUNDS FOR BUSINESSES BEGIN: This week, the first of $170 billion in tariff refund payments started as required after the Supreme Court in February ruled against Trump’s use of the International Emergency Economic Powers Act (IEEPA) as the basis for “Liberation Day” tariffs.  Last month’s Digest spotlighted the problem of tariff refunds only being available to specific firms listed as an “importer of record” even as the costs of higher tariffs were borne mainly by U.S. consumers and small businesses that do not qualify to even apply for refunds. Meanwhile, President Trump is politically pressuring firms not to apply, in April  saying that companies would be “brilliant” and remembered gratefully if they did not seek tariff refunds. Except for the few firms that have said that would try to provide relief to consumers, the payments will come as windfall gains that companies have said will go to profits, business investments, and inventory purchases. Some consumers are trying to extract compensation. This week, Nike became the latest target of a class action lawsuit from consumers seeking refunds.

ICYMI

• Economic Liberties joined consumer groups in urging the FTC and DOJ to investigate whether Netflix is engaging in monopolistic practices that allow it to continue raising streaming prices.
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• The Congressional Progressive Caucus unveiled a “New Affordability Agenda,” which consists of bills to tackle the affordability crisis, such as lowering utility prices and cracking down on Robinson-Patman Act abuses that increase grocery costs.
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• A new report by Drug Channel Institute explained that PBMs and their specialty pharmacies control two thirds of the specialty drug market, steering patients away from independent pharmacies.
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• Pharmaceutical giant Eli Lilly is aiming to buy cancer drug developer, Ajax Therapeutics, which develops drugs to treat rare diseases like myelofibrosis.
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• FTC and DOJ extended the public comment period until May 21 on its proposed update to Guidance on Business Collaborations, guidelines on how businesses can legally collaborate.
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• New Jersey AG Jennifer Davenport led a letter with 22 additional state AGs opposing a proposed DOJ rule that would limit state bar disciplinary proceedings related to ethical misconduct by DOJ attorneys.
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• Chicago-based Plumbers Local 130 filed a class action lawsuit against PBM Express Scripts and its parent companies, Cigna and Ever North, alleging the PBM committed fraud through a rebate scheme to drive up prices.
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• ProPublica found the Trump DOJ dropped more than 40 antitrust cases in the first six months of the Administration, more than double the number in that same period than the prior three new administrations.
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• The Trump Administration appointed Casey Mulligan as chief economist and chief regulatory officer at HHS where he will focus on health care affordability.
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• Bowlers have filed a class action lawsuit in federal court against private equity-backed Lucky Strike Entertainment Corp. for rolling up independent bowling alleys and raising prices.
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• Building products company QXO, which is a top producer of roofing, waterproofing, and lumber-related building materials, has agreed to buy TopBuild, an insulation products company, for $17B.
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• Spice giant McCormick is set to buy Unilever, a consumer-packaged goods company that makes condiments like Hellman’s Real Mayonnaise.
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• Groups including the American Farm Bureau Federation, BNSF Railway, and the American Chemistry Council launched the Stop the Rail Merger Coalition to oppose the Union Pacific-Norfolk Southern merger.
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• Sen. Gillibrand (D-NY) led a letter urging FTC to crack down on restrictive covenants, which contribute to higher food prices and food insecurity.